ElderShield review committee named, report due Dec 2017
TODAY file photo
SINGAPORE — The long-awaited review of the ElderShield insurance scheme is set to get under way, with the Ministry of Health (MOH) announcing the composition of the 14-member committee on Friday (Oct 7), as well as its terms of reference.
The review was announced by Prime Minister Lee Hsien Loong during his National Day Rally in August, and possible enhancements to the scheme to be studied include having lifelong payouts, improving protection through risk-pooling, and providing Government subsidies for low-income Singaporeans.
The committee, chaired by Mr Chaly Mah, chairman of the Singapore Accountancy Commission, is expected to complete the review and submit its recommendations to MOH by the end of next year.
Under the terms of reference set out by MOH, the committee is to review the ElderShield design parameters and make recommendations on them, such that the scheme is “adequate, affordable and sustainable”.
The committee must also consider the key issues and trade-offs involved, such as the balance between benefit enhancements and premium levels. It will also have to engage Singaporeans, key stakeholder groups and experts on their views.
The backgrounds of the committee members span the healthcare, finance and community sectors. Among them are Ms Diana Chia, general secretary of the Healthcare Services Employees’ Union; Dr Loh Yik Hin, CEO of St Andrew’s Community Hospital; and Dr Yusuf Ali, assistant professor at the Lee Kong Chian School of Medicine.
Mr Mah, who is also former CEO of Deloitte Asia-Pacific and South-east Asia, said: “We hope to recommend enhancements to the scheme for better protection for Singaporeans, while ensuring that the scheme remains affordable and sustainable over the long run.”
Launched in 2002, ElderShield is a severe disability insurance scheme that all Singapore citizens and permanent residents with Medisave accounts are automatically enrolled in at age 40, unless they opt out. It is for those who are unable to perform at least three activities of daily living, such as feeding themselves. Monthly payouts range from S$300 for up to 60 months to S$400 for up to 72 months, depending on the scheme chosen by the policyholder. A review of the scheme has been in the wings since 2012, but was held off until the review of MediShield — now MediShield Life — was completed. Healthcare experts have taken issue with ElderShield for the cap on the duration for payouts, and the inadequacy of the payout quantum to meet long-term care needs.
As of the end of last year, there were 1.2 million ElderShield policyholders, or about 65 per cent of the resident population aged 40 to 83. About S$90 million has been paid out to about 12,400 claimants.
